q1 2016 revenues: foncière des régions going forward · fonciÈre des rÉgions 6 key events of...

Q1 2016 Revenues:

Foncière des RégionsGoing forward

3 May 2016

CONTENTS

FONCIÈRE DES RÉGIONS 2

>KEY EVENTS OF THE PERIOD

>OPERATING PERFORMANCE

>KEY TAKEAWAYS

>APPENDIX

3

Key events of the period

Office – Greater Paris

FONCIÈRE DES RÉGIONS

€517 million (€367 million Group Share) of acquisitions already secured

6.3% average yield

STRENGTHENED POSITIONS IN OUR STRATEGIC LOCATIONS

4

KEY EVENTS OF THE PERIOD

Hotel in Europe (13%)> €136 m acquisitions in Germany & Spain

(€59 m Group Share)

France Offices (45% of the portfolio1)

> €129 m acquisition in Rueil-Malmaison (Greater Paris)

Italy Offices (17%)> A key step in the development of

Symbiosis in Milan

Germany Residential (20%)> €241 m acquisitions in central Berlin


Increase quality and growth potential

Q1 2016 REVENUES

Paris

Berlin

Milan

1 In value Group Share at end-2015

FONCIÈRE DES RÉGIONS Q1 2016 REVENUES 5


FRANCE OFFICES: A GOOD START TO THE YEAR

A €129 m acquisition in one of the most dynamic office districts of Greater Paris

> 36,000 m² of offices in 3 independent buildings easily accessible by public transportations

> Fully let to Vinci for 4 years: €10 m rents (7.8% yield)

> Will reload the development pipeline in 4 years

Letting successes

Tower CB 21 (66,000 m², Greater Paris)New partnership with Regus (flexible workspaces leader)

Lease agreement for 1,465 m²

New Velizy (46,751 m², Greater Paris)Extension of the lease with Thalès

(+3-year to 10.5-year firm)



ITALY OFFICES: FIRST RESULTS OF THE NEW STRATEGY

Letting activity: a situational turnaround

Q1 2016 REVENUES

Beni Stabili: subsidiary 50.1% held by Foncière des Régions (vs 48.5% end-2015)

> Acquisition of 32 million shares at an average price €0.60 => €22 m investment, 27% discount on EPRA NAV

Via Messina (12,369 m², Milan)6,530 m² let to Widiba; €1.2 m of rents

Via Durini (555 m², Milan)555 m² let to Mc Donald’s; €1.1 m of rents

Via Dante (6,199 m², Milan)928 m² of retail let; €1.3 m of rent

Firmly on track for our 2016 objectives

> 28% already secured

> Occupancy rate on offices ex-TI => +3 pts to 89%

> 12 new contracts signed for 14,679 m² => €4.2 m of new rents

> Vacant assets plan: €14 m in potential extra rents


New General Manager

> Alexei Dal Pastro, ex-Head of Fund & Asset Management and member of the management committee of Prelios SGR (c. €4 bn asset under management)



ITALY OFFICES: FIRST RESULTS OF THE NEW STRATEGY

Q1 2016 REVENUES

Symbiosis: a milestone for a new innovative office district in Milan

> 19,000 m² of offices to be delivered in October 2018

> Investment: €86 m (including land); 6.8% yield on cost

> Housing the new Fastweb headquarter:

16,000 m² (option for the remaining 3,000 m²); 10.5 years lease

To be the reference for innovative companies careful to productivity, well-being and sustainability values

> Strategic location: south of Milan

> Competitive rents: 300 €/m²

> Combine cutting edge design, building innovation and rich experiences for the users



GERMAN RESIDENTIAL: QUALITATIVE ASSET ROTATION DYNAMIC

Berlin: 47% of the portfolio vs 40% at end-2015

> €241 m acquisitions (€168 m Group Share)

> Gross yield: 4.9% (4.6% for residential)

> Reversionary potential: 40% (50% for residential)

Q1 2016 REVENUES

> €162 m disposals (€99 m Group Share)

> Gross yield: 7.8%

> Disposal margin: +9%

Reinforcement in central

Berlin

Decrease in NRW1

exposure

1 North-Rhine Westphalia



HOTELS IN EUROPE: STRENGHTENING OUR LEADERSHIP STATUS

Reinforcement in FDM share

capital

Q1 2016 REVENUES

Increase exposure in

hotel real estate

Increase European exposure

Develop new investment

opportunities

FdR owns 47.5% vs 43.1% at end-2015

> Launch of a public takeover bid on FDM between

May 18th and June 21st

> 1 FdR new share for 3 FDM shares (ex-dividend)

Acquisition of 5 NH hotels in Germany

> In 2017 and 2018; 20 year leases

> €124.8 m (€54 m Group Share); 6.1% yield

Acquisition of 4 B&B hotels in Spain

> 15 year leases

> €11.2 m (€5 m Group Share); 6.5% yield

Launch of Foncière Développement Tourisme

> With the Caisse des Dépôts

> Objective to invest €1 bn over the medium term

> Hotels in tourist resorts, tourist residences and holiday centres

NH Hotel, AmsterdamMotel One, Germany

10

Operating performance

Office – Milan


OPERATING PERFORMANCE

Q1 2016 REVENUES: + 5.5% INCREASE

Positive impact of the 2015 deliveries

1st positive effects of the occupancy rate improvement

+ 4.7% in like-for-like in Berlin

Indexation: +0.1%

Occupancy rate: +0.2%

Renewals: -0.7%

+ 0.5% in like-for-like excluding AccorHotels (variable rents)

Group ShareRental income

(€m)Change

Change onlike-for-like

basis

Occupancyrate

Residual firm terms of leases

Offices - France 61.7 + 8.1% - 0.2% 95.9%1 5.6 years

Offices - Italy 24.8 - 7.6% - 3.1% 94.3%1 9.7 years

Of which Telecom Italia offices 12.5 -11.9% -6,9% 100% 14.6 years

Of which Offices ex Telecom Italia 12.3 -2,8% +1.3% 89% 5.1 years

Offices 86.5 + 3.1% - 1.1% 95.5% 6.7 years

Residential Germany 32.1 + 19.7% + 2.6% 97.8% n.a.

Hotels/Service Sector 18.7 + 3.1% - 1.5% 100% 10.5 years

Other (French Resi.) 2.6 - 31.4% n.a. n.a. n.a.

Total 139.9 + 5.5% - 0.4% 96.6%1 7.3 years

1 Including last letting agreements in CB 21 (effective in May 2016), Astrolabe (effective in May 2016) in France Offices and Messina (October 2016). 96.3% occupancy rate excluding those impactsQ1 2016 REVENUES

Impacts of the 2015 renegotiation


DISPOSAL PROGRAM: €215 MILLION AT END-MARCH 2016

12

OPERATING PERFORMANCE

(€m, 3 months 2016)Disposals and

agreements(100%)

Disposals and agreements(Group Share)

Margin vs.last appraisal

values Yield

France Offices 2 2 -26.5% 8.5%

Italy Offices 9 5 1.0% 5.9%

Germany Residential 162 99 +8.7% 7.8%

Hotels & Service Sector 0 0 n.a. n.a.

Non-strategic 41 25 + 4.2% 1.6%

Total asset disposals 215 131 +6.9% 6.5%

Improve the quality, sell mature assets in a favourable context

Q1 2016 REVENUES

13

Key takeaways

Residential – Berlin


KEY TAKEAWAYS

KEY TAKEAWAYS

Residential - Berlin Hotel - Germany

Office – Greater Paris Office - Milan

France OfficesSuccess of the investment

and letting strategies

German ResidentialDynamic asset rotation reinforcing

prospects for organic growth

Italy OfficesA milestone for a new phase

Hotel Real EstateReinforced European exposure

A good start to the year


FINANCIAL AGENDA

AGENDA

Capital Markets Day: 14 June 2016

Half year 2016 results: 22 July 2016

Q1 2016 REVENUES

16

Appendix

AccorHotels – Greater Paris


Q1 2 0 15 Q1 2 0 16C ha ng e

(%)Q1 2 0 15 Q1 2 0 16

C ha ng e

(%)

C ha ng e

(%)

LF L

% o f

re nt

Offic e s Fra nc e 60,3 68,0 12,9% 57,0 61,7 8,1% - 0,2% 44%

Offic e s Ita ly 55,6 49,6 - 10,9% 26,9 24,8 - 7,6% - 3,1% 18%

To ta l Offic e s 115 , 9 117 , 6 1, 5 % 8 3 , 9 8 6 , 5 3 , 1% - 1, 1% 6 2 %

Hote ls a nd S e rvic e se c tor 46,5 48,1 3,5% 18,1 18,7 3,1% - 1,5% 13%

Re side ntia l Ge rma ny 44,5 52,1 17,0% 26,8 32,1 19,7% 2,6% 23%

To ta l s tra te g ic a c tivitie s 2 0 6 , 9 2 17 , 8 5 , 3 % 12 8 , 9 13 7 , 3 6 , 5 % - 0 , 4 % 9 8 %

Othe r 6,1 4,2 - 31,4% 3,7 2,6 - 31,4% n/a 2%

To ta l re n t 2 13 , 0 2 2 2 , 0 4 , 2 % 13 2 , 6 13 9 , 9 5 , 5 % - 0 , 4 % 10 0 %

(€ m illio n)

10 0 % Gro up S ha re

Q1 2016 REVENUES

17

APPENDIX

Q1 2016 REVENUES


ORGANISATION CHART AT END-MARCH 2016

18

APPENDIX

Foncière des Régions

France Offices Italy Offices(Beni Stabili)

German Residential

(Immeo)

Management contracts

(FDM Management)

Hotels & Service Sector

(Foncière des Murs)

50.1% 61.0% 43.1%

40.8%

Consolidated subsidiaries

Equity affiliates

Q1 2016 REVENUES

French Residential

(FDL)

61.3%


Paris30, avenue Kléber75116 ParisTel.: +33 1 58 97 50 00

ContactPaul ArkwrightTel.: +33 1 58 97 51 85Mobile: +33 6 77 33 93 [email protected]

q1 2016 revenues: foncière des régions going forward · fonciÈre des rÉgions 6 key events of...

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